US Consumer Spending Stalls, GDP Takes a Hit

• Core PCE inflation remains sticky at 3.1% year-over-year, above the Fed's 2% target.
• US GDP growth in Q4 was cut in half to 0.7%, with consumer and business spending also weakening.
• Bond markets are pricing in an economic slowdown, with the yield curve flattening and rate cuts priced out until 2026-2027.

The video discusses recent US economic data, including persistent core inflation (3.1% YoY) despite slowing consumer and business spending, and a significant cut in Q4 GDP to 0.7%. This data complicates the Federal Reserve's inflation fight, with markets pricing in an economic slowdown and no rate cuts until late 2027, raising questions about the Fed's strategy.